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Intermat Rate of Rrtum Method for a Service Company. The Riverton Company, announced a 4566,352 milion expansion of lodging properties, ski ifts, and terrain in

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Intermat Rate of Rrtum Method for a Service Company. The Riverton Company, announced a 4566,352 milion expansion of lodging properties, ski ifts, and terrain in Park City, Utah. Assume that this investment is estmated to produce 5114,000 million in equal annual cash flows for each of the first eight years of the project life. Present Value of an Annuity of s 1 at Combound Intavast a. Determine the expected internal rate of return of this project for eight years, using the present value of an annuity of $1 table above. b. Identity the uncertainties that could reduce the intemat rate of retum of this project

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